how to calculate GST??

[WBG Redcliffe]

GST

If you build and sell how is the GST calculated? Is it the difference between build price and sale price if you did not claim the GST on the construction?

Eg: build 250k land 200k sell 540k = 90k profit so GST would be 9k?


Thanks in advance

 

[Rickardo]

You need to charge GST on the sale price, so at a sale price of 540k = $54k.

This can be offset by any GST which was payable on any purchases, eg building costs were 200k and of this you paid $18,818 in GST.

So total GST payable would be $54,000 - $18,818 = $35,182.

 

[JoyBoy]

Alternatively you can use the margin scheme whereby you charge GST on the difference between the cost and sale price (the margin).

However, you have to meet certain conditions before you can apply the margin scheme.

 

[WBG Redcliffe]

thanks for that